1st international doctoral student...
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1ST INTERNATIONAL DOCTORAL STUDENT CONFERENCE
CONTEMPORARY RESEARCH ISSUES IN ECONOMICS, MANAGEMENT AND
BUSINESS
University “St. Kliment Ohridski”-Bitola,
Faculty of Economics-Prilep, Republic of Macedonia,
May 18, 2013
ISBN 978-9989-870-71-2
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Scientific board
Massimo Bianchi (UNIBO), Italy
Joaquim Verges (UAB), Spain
Stephane Ngo-Mai (UNICE), France
Donika Kerchini (AUT), Albania
Fatmir Memaj (UT), Albania
Avdulla Hoti (Dardania), Kosovo
Taki Fiti (UKIM), Macedonia
Miroljub Shukarov (SEEU), Macedonia
Marika Basheska-Gjorgieska (UKLO), Macedonia
Organisation committee
Marika Basheska-Gjorgieska (UKLO), Macedonia
Dimitar Nikoloski (UKLO), Macedonia
Marjan Angleski (UKLO), Macedonia
Olivera Kostoska (UKLO), Macedonia
Tanja Micalevska (UKLO) Macedonia
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Contents
THE IMPORTANCE OF RELATIONSHIP LENDING FOR THE DEVELOPMENT OF
SME`s IN THE REPUBLIC OF MACEDONIA.............................................................................6
Dimitar Anevski
ACCEPTANCE OF E-BANKING SERVICES FROM SMALL AND MEDIUM
ENTREPRISES................................................................................................................................7
Ajtene Avdullahi
MONETARY AND FISCAL POLICY IN TIME OF CRISIS. THE CASE OF THE
REPUBLIC OF MACEDONIA .......................................................................................................8
Marija Bashevska
ANTECEDENTS AND CONSEQUENCES OF ORGANIZATIONAL COMMITMENT:
A REVIEW OF LITERATURE ......................................................................................................9
Aysen Berberoglu
INTERNET, E-COMMERCE AND SOCIAL NETWORKS AS A CONDITION FOR
BUILDING ICT INNOVATION IN THE ORGANIZATION .....................................................10
Milena Boshkoska
THE IMPACT OD THE EUROPEAN DEBT CRISIS ON THE MACEDONIAN REAL
ESTATE AND FINANCIAL SECTOR ........................................................................................11
Aleksandar Dejanovski
A WAY AHEAD FOR THE MACEDONIAN TOURISM INDUSTRY: FROM
TRADITIONAL TO DIGITAL BUSINESS MODELS................................................................12
Makedonka Dimitrova,
MICROINSURANCE: A NEW RISK MANAGEMENT TOOL .................................................13
Dimoska Biljana
THE PROCESS OF KNOWLEDGE MANAGEMENT AND ITS IMPACT OF A
SMALL AND MEDIUM ENTERPRISES AND MARKET DEVELOPMENTError! Bookmark not defined.
Ana Dimovska
PROBLEMS ON PRODUCTION AND PRODUCTIVITY IN MEAT FILIÈRE IN
ALBANIA......................................................................................................................................15
Gentjan MEHMET
THE INFLUENCE OF THE ENTREPRENEURSHIP DEVELOPMENT ON THE
INNOVATION PROGRESS .........................................................................................................16
Aleksandar Gjuroski
THE IMPLICATIONS OF DIGITAL TECHNOLOGY ON THE LABOR MARKET –
CASE STUDY FOR MACEDONIA .............................................................................................17
Violeta Gligorovski
COOPERATION – A WAY OF INCREASING THE EXPORT PERFORMANCE OF
COMPANIES - REVIEW OF MACEDONIAN COMPANIES ...................................................18
Vladimir Gonovski
CAUSAL RELATIONSHIP BETWEEN WAGES AND PRICES IN R.MACEDONIA:
VECM ANALYSIS .......................................................................................................................19
Dushko Josheski Snezana Bardarova
COSTS AND INVESTMENTS FOR INFORMATION SYSTEMS IN SMALL &
MEDIUM ENTERPRISES ............................................................................................................20
Verica Atanasova Jovanovska,
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THE INFLUENCE OF PROJECT MANAGEMENT SOFTWARE APPLICATIONS IN
ENTREPRENEURSHIP DEVELOPMENT .................................................................................21
Verica Atanasova Jovanovska,
The New Role of Human Resource Management .........................................................................22
Arta Koka Grubi
TRADE DEFICIT OF THE REPUBLIC OF MACEDONIA REFLECTION OF THE
STRUCTURE OF ITS ECONOMY ..............................................................................................23
Goran Kokaroski
SUPPLY CHAIN MANAGEMENT AND ITS IMPLEMENTATION IN THE
ORGANIZATIONS IN MACEDONIA ........................................................................................24
M-r Kristina Kovacevik,
REGIONAL DEVELOPMENT ECONOMIC DETERMINANTS IN INDUSTRIES OF
WESTERN BALKANS COUNTRIES .........................................................................................25
MSc Milena Lutovac,MA Miloš D. Lutovac
The business climate in Western Balkan economies: The case of Macedonia ..............................26
Tanja Micalevska
THE LABYRINTH OF EXTERNAL SUPPORT TO SME’S GROWTH: THE RECENT
ENDEAVOURS OF MACEDONIAN POLICY FOR REGIONAL DEVELOPMENT ..............27
Marijana Milevska
REFORM OF THE INTERNATIONAL FINANCIAL SYSTEM:IMF CHANGES THE
PATH OF THE GLOBAL ECONOMY OR VICE VERSA? .......................................................28
Kristina Nikolovska
Management and Training of Working Group inside the Organization ........................................29
Nuhi Sela, Hamit Aliu
THE ROLE OF SOCIAL MEDIA IN TECHNOLOGY ADOPTION THROUGHOUT
THE PRODUCT LIFE CYCLE.....................................................................................................30
Anja Orčik, Jelena Stanković, Slađana Gajić
An analysis of the mismatch between supply and demand on the Macedonian labour
market ............................................................................................................................................31
Goran Pechijareski
TRIGGERS OF THE SUBPRIME MORTGAGE CRISIS, STILL NOT DEFEATED BY
THE WORLD ................................................................................................................................32
Renata Petrevska Nechkoska
THE IMPACT OF INNOVATION IN SMES PERFORMANCE ................................................33
Lura Rexhepi
Main Factors that influence failure of SMEs in Kosovo ...............................................................34
PhD Candidate Sevdie Alshiqi – Bekteshi
THE POTENTIAL ADVANTAGES AND DISADVANTAGES OF CONTRACT
FARMING .....................................................................................................................................35
Shpresim Domi
Supply chain management –a competitive advantage for Small and Medium Enterprises
(SME’s) ..........................................................................................................................................36
ZoranSpaseski, Phd student,
RECONDITIOTNS THAT ENABLE SECURITY ENVIRONMENT IN ELECTRONIC
COMMERCE ................................................................................................................................37
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Stojkovski Viktorija
Business Incubator as an Economic Development Strategy: case study of business
incubator in Bitola..........................................................................................................................38
Suzana Trajkovska Kochankovska,
IMPLEMENTING CONTEMPORARY SOLUTION TO SMEs MARKETING ........................39
Boris Trimcev
THE BLUE OCEAN STRATEGY CONCEPT APPLICATION IN MACEDONIAN
SMEs ..............................................................................................................................................40
Ljupco Veleski
Issues Affecting the Growth of Small and Medium Enterprises in Kosovo ..................................41
Shpresim Vranovci
The benefits of standardization for business intelligence tools .....................................................42
Dejan Zdraveski
IMPACT OF THE BUSINESS ENVIRONMENT IN PERFORMANCE OF
MANUFACTURING FIRMS IN KOSOVO ................................................................................43
Kujtim Zylfijaj
Advantages of implementation brand-portfolio strategies on the case of Macedonian
companies ...................................................................................... Error! Bookmark not defined.
Marija Midovska
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THE IMPORTANCE OF RELATIONSHIP LENDING
FOR THE DEVELOPMENT OF SME`s IN THE REPUBLIC OF MACEDONIA
Dimitar Anevski
PhD student at Economic Institute Skopje, University St. Cyril and Methodius Skopje.
Abstract
We are witnessing a period in which the world is being shocked by political and financial crisis,
when large corporations are closing down subsidiaries and letting go employees and the SME`s
are not exception.
As the economy slows, the banks are becoming stricter. They are lending less, usually by
reserving their funds for larger companies with whom they have built long-term relations.
Assessment of client creditworthiness can be performed in four categories, financial statement
lending, asset-based lending, credit scoring and relationship lending. Assessments of large
company are easy because they have official statements and proper collateral, but SME`s usually
have lack of it. The relationship lending is based on built close relations between the bank and
the company and relies on soft information, such as the owner`s reputation, society judgment etc.
Relationship lending requires continual, personalized, direct contact with SME`s in the local
community in which they operate. Built relations ease the collection of information and helps for
better knowledge of the company`s business activities which increases the loyalty and ultimately
makes credit decision easier and quicker.
Having in fact that the SME`s are the pillar of the economy, their financing is of essence for the
growth of the economy and the employment. The aim of this paper is to show how important are
long term relations between banks and borrowers for continuance in financing in this turbulent
period, and the research should emphasize the existence of relationship lending.
The paper uses data from survey and from existing variables by loan applicants for the past 3
years in Stopanska Banka AD Bitola, and examines relations between those variables using the
correlation method.
Although it is difficult to draw causal inferences from these data, existing evidence suggests that
the majority of the denied credit requests are to SME`s that are not prior clients. The results show
that the best way to secure future funding is to have long term relationship with the bank.
Key words: Relationship Lending, Relationship Banking, Development of SME`s.
JEL classification: L26, G21
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ACCEPTANCE OF E-BANKING SERVICES FROM SMALL AND MEDIUM
ENTREPRISES
Ajtene Avdullahi, PhD Student
Customer Relation Officer Raiffeisen Bank, Kosovo
Abstract
In addition to technological development, Internet, Information systems, E-business and E-
payments are becoming part of everyday life of all people. This study discusses and explores the
acceptation of E-banking services as well the obstacles in the context of its usage by small and
medium enterprises. The aim of this paper is to investigate the factors which influence the
acceptance of E-banking services by small and medium enterprises in Mitrovica region provided
by banks that operate in Kosovo. For the purposes of this study, a sample of 106 respondents was
collected. With the Internet usage period, perceived ease of use; quality of the Internet and
demographic factors as independent variables, this paper examines how these factors influence
the acceptance of E-banking services from small and medium enterprises. Most of the small and
medium enterprises of the sample were E-banking users 72.64% and 27.36% still do not use
these services. Small and medium enterprises in the urban area are more likely to use E-banking
services than the rural ones of this region. However variable concernedly the Internet usage
period shows it is relatively important compared to the two variables as indicated by the results
of the correlation coefficients.
Keywords: SMEs, E-banking, Internet, acceptance.
JEL classification: L26, G21,
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MONETARY AND FISCAL POLICY IN TIME OF CRISIS. THE CASE OF THE REPUBLIC
OF MACEDONIA
Marija Bashevska, MSc
Teaching Assistant
Faculty of Economics, FON University
e-mail: [email protected]
Ph.D. student, Ss. Cyril and Methodius University, Faculty of Economics - Skopje, Skopje,
Republic of Macedonia
ABSTRACT
The recent economic crisis, which started as financial crisis in the United States of America,
August 2007, rapidly developed in one of the most severe global crisis since 1930s. Advanced
economies suffered serious disruptions in financial sector that rapidly weakened their economic
fundamentals, imposing complex challenges for monetary and fiscal authorities. Responses on
the crisis in these economies employed strong, diverse and often unconventional and innovative
policy measures and tools, in order to prevent further sharper, negative effects on the key
economic sectors. Developing and emerging economies due to relatively low level of integration
in the world financial markets, mainly avoided major instabilities in the financial sector, but the
negative impact on the real sector occurred inevitable.
Macedonian economy faced the effects of the global crisis primarily on the real sector, entering
recession in 2009. Financial sector was relatively sound, while the threats were imposed from the
greater external vulnerability of the economy. This paper analyzes monetary and fiscal policy
responses from the beginning and during the crisis, their impact on the financial and the real
sector, as well as their overall effects on the output and economic activity in Macedonia. It also
focuses on the coordination capacity and complementarities of the key macroeconomic policies
in time of crisis. The role of the constraints - exchange rate regime, the current account balance,
the public debt - is also explored. These analyses reveal the capacity of the monetary and fiscal
policy of the country in undertaking measures that prevent adverse effects on the financial and
real sector. It also detects and point out the weaknesses, constraints, challenges and
recommendations in the conduct of the key macroeconomic policies in the time of global
economic crisis.
Key words: global crisis, recovery, monetary policy, fiscal policy
JEL classification: E61, E62, E63,G01
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ANTECEDENTS AND CONSEQUENCES OF ORGANIZATIONAL COMMITMENT: A
REVIEW OF LITERATURE
Aysen Berberoglu
Cyprus International University
Since the introduction of human relations school of thought by Elton Mayo, the relationship
between management and employees has played an important role in both academic and business
world regarding the performance of the organizations and turnover intentions of employees. In
previous research, organizational commitment, one of the important concepts regarding the
attitudes of employees towards their organization, is found to have a significant relationship with
and also affect on the performance of organizations and intention to leave. Consequently, the
antecedents of organizational commitment are also important aspects of employee-organization
relationship. In the extant literature variety of antecedents for organizational commitment was
introduced. Some of the common antecedents to be found in the literature are organizational trust
and justice, tenure and work values whilst the consequences are mainly increased employee
performance and motivation, lower turnover intentions and organizational citizenship behavior.
On the other hand, the concept of job satisfaction is found to be both an antecedent and a
consequence for organizational commitment in the literature. The aim of this study is to compare
and contrast the findings of the studies in extant literature regarding the antecedents and
consequences of organizational commitment in detail. To reveal the specified antecedents and
consequences of organizational commitment in the extant literature, a detailed review of
literature will be made specifically on this topic. The study is expected to reveal the most
commonly found antecedents to and consequences of organizational commitment by the end of
research. The research will be carried out by analyzing research papers/articles found in
literature. The results of this research are expected to reveal the common antecedents and
consequences of organizational commitment and allow the audience to have an idea about the
relationship between concepts involved.
Keywords: Organizational commitment, antecedents and consequences, employee, performance,
turnover
JEL classification: L29, J24
10
INTERNET, E-COMMERCE AND SOCIAL NETWORKS AS A CONDITION FOR
BUILDING ICT INNOVATION IN THE ORGANIZATION
Milena Boshkoska M.Sc.
Institute of Economics, Skopje
University “St. Cyril and Methodius"- Skopje
Republic of Macedonia
Abstract: Internet, e-commerce and especially social networks attract a huge number of
visitors. Furthermore, they are spreading rapidly and many of them cater to a specific segment of
the population (e.g., music lovers, travelers, car fans, etc.). A large proportion of the visitors are
young, but in the future that will change. Many believe that the social networks, blogging and
internet will play major role in the future e-commerce. This opens the door for several ICT
innovations in the organization.
The innovation has the central importance for survival of the organizations in the rapidly
changing competitive environment by changes and developments on products, services, sales and
manufacturing processes. The perceived importance of innovation for long-run economic growth
is such that many governments have introduced new policy targets for research and development
(R&D) expenditures. It becomes clear that ICT and business innovation are closely coupled and
the ability to capture the opportunities of innovation are contingent on approaches to investment
and management of ICT capability.
Connection with social networks and ICT innovations is one of the most important achievements
for development the organization.
The paper reviews one of the important fields of study in contemporary economy–social
networks, internet and e-commerce in the sphere of ICT innovation in the organization. Besides
basic theoretical and methodological conceptions in studying that originate from general
knowledge and special economy disciplines most important fields of study of social networks,
internet and e-commerce in ICT innovation in the organization are presented. Some influential
studies are analyzed; some key weaknesses are pointed out, as well as possibility of their future
development.
Key words: social networks, internet, e-commerce, innovation
JEL classification: O32, M20, M1
11
THE IMPACT OD THE EUROPEAN DEBT CRISIS ON THE MACEDONIAN REAL
ESTATE AND FINANCIAL SECTOR
Aleksandar Dejanovski, PhD student at “The institute of economics”, Skopje, The Republic of
Macedonia, [email protected]
ABSTRACT
The large debts, unproductive spending, high budget deficits and low economic grow, have
generated a debt crisis in some countries in the Euro zone, which had implications on the overall
financial system of Europe and wider. The emerging of the European sovereign crisis conducts
some serious issues to European financial and real estate sector. The negative effects of the
European debt crisis are quite large, considering that the crisis has emerged as an accumulation
of global economic crisis from the 2008.
The aim of this paper is to analyze the effects and the consequences from the contemporary
sovereign crisis on the Macedonian financial and real estate sector. The basic research goal of the
paper is to analyze the actual conditions in the Macedonian economy, and to suggest some
solutions for macroeconomic and microeconomic activities to overcome the situation.. The
research, at first, investigates the impact of the crisis on the Macedonian financial sector,
analyzing the structure and the resistance of the financial sector in the Republic of Macedonia.
Regarding the impact of the crisis on the real sector, the interdependence between the
Macedonian and European trade, and the structure of export and import of the Republic of
Macedonia, is going to be analyzed, in order to fulfill the research goal. The basic methods, used
in this paper are: analytical method, applied research method and descriptive method. This paper
should give clear signals to the macroeconomic and microeconomic policy makers how to deal
with the problems, how to stabilize the financial and real estate sector, and how to generate
growth
Key words: European sovereign debt crisis, budget deficit, trade deficit, capital adequacy ratio,
fiscal policy.
JEL classification: H50, H63,E62
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A WAY AHEAD FOR THE MACEDONIAN TOURISM INDUSTRY: FROM
TRADITIONAL TO DIGITAL BUSINESS MODELS
Makedonka Dimitrova
University American College Skopje
e-mail: [email protected]
This paper explores the possibilities for Macedonian tourism to fully extend the offer of tourist
experiences online. It focuses on the differences and similarities between the traditional and the
digital business models in the tourism industry in Europe with Macedonia in the focus. The paper
will be combination on secondary data analysis as well as the grounded research theory approach
on available case studies on European tour operators. The research work anticipates development
of case study of Macedonian online tour operator Exploring Macedonia. The paper will focus on
the benefits from the service digitalization of the tour operators. The research aims at producing
recommendations for the Macedonian tourism industry and their future integration in the wider
digital networks that successfully operate in Europe.
Keywords: business model, digital business model, tourism, network, cluster
JEL classification: L83, Z18
13
MICROINSURANCE: A NEW RISK MANAGEMENT TOOL
Dimoska Biljana, MA, doctoral candidate
Faculty of Tourism and Hospitality-Ohrid
email:[email protected]
Poor people are exposed to different types of risks, which impact on their financial condition.
Since the last decade, a new risk management tool has been promoted worldwide, called
microinsurance. This new kind of insurance can improve the well-being of the poor. The aim of
this paper is to present the characteristics of this new tool in order to become familiar to a wider
population, as it will become a part of our society. The main study is based on desktop research,
which included a lot of recent research papers and case studies, as well as reports of many
international institutions that are involved in the process of international promotion of
microinsurance. The goal of the conducted research is presenting microinsurance benefits for the
poor population in Republic of Macedonia, and also for the insurance industry itself. Firstly, the
research results are expected to show that microinsurance is an inefficient strategy tool for
coping with risks intended for poor people. On the other hand, introducing microinsurance in
insurance companies allows them to reach an untapped market. It is expected, that this paper will
provide ideas for introducing this new risk management tool in our country, which is also a
recommendation of the International Association of Insurance Supervisors and European
Commission.
Keywords: microinsurance, risk management, poor people, insurance company, risk
management tool.
JEL classification: G22,O10
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THE PROCESS OF KNOWLEDGE MANAGEMENT AND ITS IMPACT OF A SMALL AND
MEDIUM ENTERPRISES AND MARKET DEVELOPMENT
Ana Dimovska, Student of doctoral studies
of Economic faculty –Prilep, department Marketing
E-mail address: [email protected], [email protected]
Abstract
This paper explains the meaning of the term of the knowledge management and what is the
process of knowledge management. Also it will be explained why process of knowledge
management should be implemented in the small and the medium enterprises and what kind of
benefits these enterprises will get if they implemented this process.
The aim of this paper is to contribute for raising the awareness of the small and the medium
enterprises for appreciation of the knowledge which they posses and the importance of efficient
and effective managing with it.
After the theoretical research, the practical research will be done in the small and the medium
enterprises in the Republic of Macedonia. The main research goal is to get perception of
familiarity of the process of the knowledge management in the enterprises and its use.
The practical research will be done with questionnaires. The methodology of the research will be
with going into the topic with general questions, and then with specific questions with which we
can go deeply in the problem and discover the real situation in the enterprises about the
knowledge management and its impact of the improvement, profit and market development in
the enterprises. The information of the research will be processed with SPSS, the statistic
software application.
The expected results are that the enterprises of the Republic of Macedonia do not pay enough
attention of the impact of the process of knowledge management of their progress in the way of
working and development of the new markets. This is the main hypothesis, we will see if this
hypothesis is true after getting and processing the results.
Key words: knowledge management, small and medium enterprises
JEL classification: L26, D83
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PROBLEMS ON PRODUCTION AND PRODUCTIVITY IN MEAT FILIÈRE IN ALBANIA
M.Sc. Gentjan MEHMETI
Economy and Agribusiness Faculty, Agricultural University of Tirana
Email: [email protected]
Abstract
Background: The livestock products sector is considered a priority in Albania, since Albania has
quite optimal conditions for livestock breeding. Nevertheless, production and productivity in this
sector are quite low. This situation is determined by the fact that livestock production farms have
as main objective milk production. The meat production represents a secondary objective. In this
context, the support of the meat production industry and the good management of value chain are
two fundamental problems.
The paper is focused on a particular value chain (meat filière). International experiences have
often demonstrated that chain analysis can be important tools in efforts towards the enhancement
of performance of agricultural, food and fiber systems (Da Silva, et al. 2007).
Purpose: To identify the factors that affects the production and productivity in meat filière in
Albania. This assessment, among others accomplishes these objectives: (1) to identify factors
that affect the efficiency and the competitiveness of the chain; (2) to contribute to the improving
of the economic and financial performance of the parties involved in the chain; (3) to contribute
towards a permanent dialogue between stakeholders in the chain and public policy makers; (4) to
propose a series of recommendations for public and private sector.
The applied methodology/approach included: intensive expert talks with Ministry of Agriculture,
Food and Consumer Protection staff; individual meeting with leading representatives of the meat
processing industry (including visits of slaughterhouses); representatives of associations, traders
and importers; farm visits; focus group meetings in all major geographical areas.
In order to make this study transparent the authors are focused on cattle, sheep, goats, pigs and
chicken only; other animal origin sectors (horse, goat, buffalo, ostrich etc) have not been
included.
Findings: Value chain analysis highlights significant opportunities to improve the performance,
profitability and relationships of actors in meat filière.
Keywords: filière, value chain, production, productivity.
JEL classification: Q12,Q18,
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THE INFLUENCE OF THE ENTREPRENEURSHIP DEVELOPMENT ON THE
INNOVATION PROGRESS
Aleksandar Gjuroski
PhD student
International Doctoral Programme in Entrepreneurship and SME Management
University “St. Kliment Ohridski” – Bitola
Faculty of Economics – Prilep,
St. Gjorce Petrov bb, 7500 Prilep, Republic of Macedonia
E–mail: [email protected]
Abstract
The purpose of the paper is to examine the influence of the entrepreneurship factors on the
innovation progress in Macedonia. The paper at first explores the innovation progress of
Macedonia in comparison with other SEE countries and then it tries to find if the determinants of
entrepreneurship such as: regulation & taxes, permits & licenses and access to finance,
stimulates / underpins the level of innovation in the country. The data analysis is conducted
based on the OECD indexes for measuring entrepreneurship and the indicators for measuring
innovation according to the World Bank ‘DoingBusiness’ reports and databases. Descriptive and
regression analysis together with multiple country analysis with their variety of statistical
techniques are used since their common objective is to represent a broad set of variables in terms
of a smaller number of hypothetical variables. Although comprehensive understanding is still
lacking concerning the interface of entrepreneurship, innovation and growth, the findings show
that there is a relationship among the entrepreneurial determinants that impact on the job creation
and economic growth and innovation development in Macedonia.
Key words: entrepreneurship, innovation, economic growth
Version: February, 2013
JEL classification: L26, O31,
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THE IMPLICATIONS OF DIGITAL TECHNOLOGY ON THE LABOR MARKET – CASE
STUDY FOR MACEDONIA
Violeta Gligorovski
University „St.Kliment Ohridski“-Bitola
Faculty of Economics – Prilep
Abstract
The aim of this paper is to analyze the development of digital technology and its implications on
the labor market. The consequences of digital technology can be detected such as changes in
structural employment in the specific economic system. The development of new technologies
generates new jobs, which are in continuity with progressive changes in the information society.
On the other hand it causes unemployment in those industries which become less attractive or
they are already adapted to these digital streams where information technologies have already
been implemented. In this context, we will apply the Schumpeter’s hypothesis of„creative
destruction“as a theoretical concept that explains these patterns. Furthermore we will elaborate
the impact of digital technology on the Macedonian economic system as well as the
consequences that affect the labor market performance. For this purpose we will use scientific
methods of comparative analyses, literature review, internet research, graphic analyses, etc.
Finally we will present conclusions and purposes policy, recommendations that will promote
more balanced economic development.
Key words: digital technology, creative destruction, labor market, unemployment
JEL classification: J40, M15
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COOPERATION – A WAY OF INCREASING THE EXPORT PERFORMANCE OF
COMPANIES - REVIEW OF MACEDONIAN COMPANIES
MSc. Vladimir Gonovski
Ohridska Banka AD Ohrid,
E-mail: [email protected]
ABSTRACT
Foreign markets entry mode decision is usually a very significant decision for the company
because it has far-reaching consequences on a firm’s performance and survival. Entry mode is
one of the most critical strategic choices, because it affects the firm’s future decisions and
operations, growth and development. Once the firm has decided to enter a foreign market, it has
to select an appropriate mode of foreign entry.
Cooperation, as an entry mode represents one of the most important strategic decision for a firm
seeing to internationalize its operation. Companies located in a small industrial district such as
Macedonia have limited resources, limited finance and they can’t afford mistakes in the
performance of foreign markets. These types of companies have low level of performances, so an
insufficient or wrong mode of entry decision will mean at least quite difficult future company
performances or in other words company liquidation. It shows that the entry mode selection is
therefore, a very important and it’s one of the most critical strategic decisions for the firm.
The main objective of the paper is to outline and discuss the relevant Macedonian issues and
challenges from a theoretical viewpoint related with the possible entry modes into international
and global markets. Macedonian companies are not able to make any further more complex
market research since they have limited financial resources. Therefore, the mutual cooperation
between the Macedonian companies is needed for better presentation in the foreign market. This
cooperation should vary in multiple spheres despite the company differences, starting from joint
market research ending with joint company performance in foreign markets.
Expected outcome of this research is an outline of the positive sides of the cooperation that will
be defined with analyzing some international experiences and create an attractive entry model for
Macedonian companies. In reviewing the current state of the Macedonian economy I will try to
build a framework and show the best form of cooperation for successful appearance in the
foreign markets.
Keywords: cooperation, limited resources, foreign market entry mode.
JEL classification: D70, F23
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CAUSAL RELATIONSHIP BETWEEN WAGES AND PRICES IN R.MACEDONIA:
VECM ANALYSIS
Dushko Josheski
University Goce Delcev-Stip, PhD candidate at FAMIS, UKLO, Bitola
Snezana Bardarova
University Goce Delcev-Stip, PhD candidate at Economics Institute, UKIM Skopje
ABSTRACT
In this paper the issue of causality between wages and prices in the Republic of Macedonia has
been tested. OLS relationship between prices and wages is positive; productivity is not
significant in determination of prices or wages too. The relation (causation) between these two
variables is from logCPI→log(average) real wage ,but also granger causality test proved that
there exist causation in opposite way also from average wages to CPI, and also productivity even
though insignificant in the OLS regression, causality test proved that productivity does granger
cause average real wages, and does not granger cause CPI . While CPI granger cause
productivity at some level of statistical significance (prob>chi^2=0.122). Engle-Granger test
proved that variables of interest CPI and average real wage are cointegrated, i.e. there exists long
run relationship between those variables, when first differenced. While, their levels are not
cointegrated. ARDL regression proved that between CPI and average real wage there exists
almost significant long run relationship (tstat=1.60), and coefficient is of size 0.3353 at one lag.
Unit root test showed that CPI and average real wage are I (1) variables. Johansen’s test of
cointegration showed that we cannot reject the null hypothesis of having rank 1 (rank=1) and
therefore the number of cointegrating vectors is one. Optimal number of lags according for
VARs and VECMs is 1. From the VECM model we can see which variable responds more if
there is shock in the system, and it seems that average real wage responds more on the shock in
the system.
Keywords: Granger causality, wages, prices, cointegration ,VECM
JEL classification: C50, E31
20
COSTS AND INVESTMENTS FOR INFORMATION SYSTEMS IN SMALL & MEDIUM
ENTERPRISES
Verica Atanasova Jovanovska,
Faculty of Economics in Prilep,
ABSTRACT
Assessing of costs in SMEs is a difficult endeavor. There are several factors that contribute.
Many of these factors are of a technical nature, such as development costs or integration costs. A
substantial part of the costs are caused by organizational factors such as changes in the
introduction of an IT system on business processes or the cost of training system of employers
and employees in SMEs.
This paper proposes analyze for IT cost & investment. Integrates factors by existing IT costs
estimation, frameworks to be able to take into account technical and organizational factors
related to IT costs in SMEs. That assists in quantifying of these factors together with the costs
that affect to investment decisions. The paper also describes the usefulness of methods for
evaluation of investments in information systems implemented in SMEs.
KEY WORDS: Costs, Transformations, Factors, Investments, Methods
JEL classification: L26, M15
21
THE INFLUENCE OF PROJECT MANAGEMENT SOFTWARE APPLICATIONS
IN ENTREPRENEURSHIP DEVELOPMENT
Verica Atanasova Jovanovska,
Faculty of Economics in Prilep,
ABSTRACT
Generally, small businesses are one of the key engines of growth (in many developing countries)
contributing to employment creation. In this paper, it is argued that SMEs cannot grow or
succeed unless they are entrepreneurial and uses information technology. Also, main emphasis is
placed on the development and entrepreneurial behavior in small businesses which tends to
achieving growth in Western Balkans countries.
Emerging business patterns in Macedonia show that small businesses will continue to be the
source of jobs and growth in the economy. Many activities have been undertaken and are
associated with small businesses, such as finance and access to them, market information,
managerial skills, implementation of information technology, software’s and etc. So, this paper
provides a description and analyses to entrepreneurship where using software applications for
management projects in SMEs are the underlying factor to the development of any business.
KEY WORDS: Software Application, Project Management, IT, Entrepreneurship, Business
Development
JEL classification: L26, M15
22
THE NEW ROLE OF HUMAN RESOURCE MANAGEMENT
Arta Koka Grubi,
IPKO Telcommunications, ZonaIndustrialep.nFusheKosove, Prishtine;10 000 Kosovo
ABSTRACT
Academic writers argue that employees should become a company’s core assets in company
consequently, the HR department would need to take on a central role in assisting the company
to fulfill its highest-level strategic objectives. However, to transform these ideas into reality has
never been easy. As a result, the HR departments in most companies remain focused on
administrative and operational tasks. The overall aim of this research is to analyze whether
Strategic Human Resource Management is as a competitive advantage in retaining and
motivating employees, and has positive impact on the overall company’s improved performance.
The research objectives are to describe major themes that emerged from the research which are
important items for consideration in the development and implementation of the new role of
management, to analyze the human resource policy patterns and strategic management of two
different organizational performances, to describe the latest trends and developments in HR
functions highlighting the significant role that employees play in organizational performance.
The research topic is presented as a structure, which will compare IPKO Telecommunication
Company in Kosovo with Primo Telecom Company in Albania, with the literature on the subject
of Strategic Human Resource Management. The study approach adds depth to the paper,
introducing real life scenarios, presenting how companies embrace the change and react to them.
The research designs and executes a quantitative and qualitative evaluation, discusses the
effectiveness of a HR functions, and proposes possible future improvements to the HR system.
The analysis of major themes that emerge from the research, are the important items for
consideration in the development and implementation of the new role of management, the
SHRM, and areas for possible future improvements to the HR system in Kosovo companies. This
entire study intends to broaden the field for the potential use of tailored SHRM.
Key Words
HR: Human Resource; HRM: Human Resource Management SHRMs: Strategic Human
Resource Management
JEL classification: O15, M12
23
TRADE DEFICIT OF THE REPUBLIC OF MACEDONIA REFLECTION OF THE
STRUCTURE OF ITS ECONOMY
Goran Kokaroski
University of “St Kliment Ohridski” Bitola,
“Faculty of Economics” Prilep, R. Macedonia,
e-mail:[email protected]
The purpose of this paper is to present the most important movement and structural
features of the economy, i.e. the foreign trade exchange and the deficit that Macedonia has
continuously for a longer period of time. The analysis in this paper will address the trends in
global trade and general trends in the foreign trade of the Republic of Macedonia in the first part,
then draw to structure of the economy in general, economic entities, import dependence,
problems in the production and value of final products, so at the end it will give a
recommendations for further action to reduce trade deficit in foreign trade. Scope of this research
will also analyze the needs for new investments in business entities for the achievement of the
required asset that can, and should be further affecting the reduction of the trade deficit in the
trade in general. Also in this paper we give a review of the policies undertaken by the state to
improve the performance of its own export or promotion of exports of Macedonian products.
Keywords: foreign trade deficit, import, export, economy, investments.
JEL classification: F13,F14,F15
24
SUPPLY CHAIN MANAGEMENT AND ITS IMPLEMENTATION IN THE
ORGANIZATIONS IN MACEDONIA
M-r Kristina Kovacevik, Ass. – University “Goce Delcev” Stip, Faculty of Tourism and Business
logistics, “Krste Misirkov”b.b., [email protected]
M-r Natasha Miteva, Ass. – University “Goce Delcev” Stip, Faculty of Tourism and Business
logistics, “Krste Misirkov”b.b., [email protected]
Abstract
Global expansion, sourcing, rapid growth, and partnership, are some of the world’s emerging
trends for which every organization is striving and they can be achieved by following the “right”
strategy. One world-wide concept is the supply chain management. The importance of this
concept results from the need for maximization of customer’s satisfaction and value, sustainable
competitive advantage, effective coordination of all the activities involved in their operations,
from product design to product delivery.
Its complexity and difficulty to implement have great influence on the organizations in
Macedonia. Additionally, since Macedonia is a relatively small and undeveloped country,
organizations are fighting back the supply chain implementation given that information must be
shared with the other parties involved to assure its effectiveness. All this results with low level
usage of the supply chain management by the organizations in Macedonia.
The purpose of this research is to explain the concept of supply chain management and the
opportunity for its implementation in Macedonian enterprises. To fulfill the purpose of the
research, several goals must be completed: to define supply chain management, to determine the
advantages from its implementation and its impact on organizational performances and to
analyze the opportunity for its implementation in Macedonian enterprises. The research is based
on qualitative approach, and uses the methods of analysis, synthesis, induction and deduction.
Our expectations are that supply chain management has a positive impact on organizational
performances and implementation of this concept can help Macedonian enterprises achieve
better business results.
Key words: supply chain management, competitive advantage, organizational performance;
JEL classification: L29, M10
25
REGIONAL DEVELOPMENT ECONOMIC DETERMINANTS IN INDUSTRIES OF
WESTERN BALKANS COUNTRIES
MSc Milena Lutovac
Faculty of Economics, University of Belgrade, Serbia, [email protected]
MA Miloš D. Lutovac
Faculty of Geography, University of Belgrade, Serbia, [email protected]
Abstract
Industrial policy is, above all, aimed at both enhancing industrial growth and overall regional
development and creating conditions for the realization of industrialization goals in Western
Balkans countries. It is of vital importance that the main goals of industrial policy are compatible
with other economic and development goals of the society. Namely, industrial policy should
contribute to overall economic growth, financial stability, healing of balance of payments, full
employment and improvement of the quality of life in all countries of the Western Balkans.
Introduction and administration of the goals of industrial policy is a very complicated task that
implies taking many actions in various domains. Very important are the coordination and
inclusion of a large number of institutions and optimal set up of all measures of economic policy.
Application of adequate measures and instruments of industrial policy should improve the
effectiveness of industry and its faster development in all Western Balkans countries.
Key words: Industry, industrial policy, regional development, economic growth, financial
stability.
JEL classification: L26, O23
26
THE BUSINESS CLIMATE IN WESTERN BALKAN ECONOMIES: THE CASE OF
MACEDONIA
Tanja Micalevska, Phd Student
Faculty of Economics –Prilep
Abstract
All countries of the Western Balkan aspire to be an integral part of the European Union, among
which is Macedonia. In order to fulfill the membership's conditions, the government of
Macedonia has made a series of changes in its legislation and institutional system. That is, in last
ten years, a variety of measures was implemented so as to improve the country's political, social
and economic status. The changes in the economic sector mostly refer to the creation of a free
and competitive market, the support of the entrepreneurship, and the development of the private
sector with an emphasis on Small and Medium Enterprises (SMEs). A crucial aspect with respect
to the size of the SME's sector in Macedonia is the positive business environment. In fact, a
friendly business climate and better competitiveness will motivate enterprises to meet the new
market challenges, develop and expand their production, create jobs or, ultimately, to survive
different situations.
In this paper, the main research goal is related to the analysis of the effectiveness of the policies
implemented in order to create an entrepreneurial environment in Macedonia. Therefore, the
following research question is posed: whether the main regulatory reforms have made a better
investment environment in Macedonia. The data for the research is taken from official web sites
and the Doing Business Report. The results obtained show an improvement in regulatory
environment. Finally, conclusions and some recommendations for policymakers are made.
Keywords: Macedonia, SME’s, reforms
JEL Classification: L26,O10
27
THE LABYRINTH OF EXTERNAL SUPPORT TO SME’S GROWTH: THE RECENT
ENDEAVOURS OF MACEDONIAN POLICY FOR REGIONAL DEVELOPMENT
Marijana Milevska
Director of the Foundation for Sustainable Economic Development PREDA Plus,
Abstract
The paper aims to assess the correlation between external support to SMEs growth and the actual
growth of the SMEs in terms of employment and profit through indirect variables on regional
level such as unemployment rate and GDP per capita. Before introducing the model that tests the
influence of the five-year policy for balanced regional development on SMEs growth in
Macedonia, an overview on recent findings related to different types of external support to SMEs
growth is presented. Moreover, short summarized outline is demonstrated on the different
theories on regional economic development as an overture to the model testing the effectiveness
of the policy on SMEs growth. The model is expected to set two-folded results. Firstly, it opens
area for researchers to test other policies and their impact on SMEs growth. Second, the results
from the model testing on regional development policy in Macedonia can be used as a starting
point for policy makers in the new programming process of strategy designin line with
Europe2020 agenda for smart specialization strategies of the regions.
Key words: SMEs growth, regional development, Macedonia
JEL classification: M11, O20, O10
28
REFORM OF THE INTERNATIONAL FINANCIAL SYSTEM:
IMF CHANGES THE PATH OF THE GLOBAL ECONOMY OR VICE VERSA?
Kristina Nikolovska
Institution: National Bank of the Republic of Macedonia
E-mail: [email protected]
Abstract
In the post-crisis period, policymakers around the world are looking for ways to upgrade and
improve the functioning of the international financial system: to better regulate the financial
institutions, to address the risks more effectively and to better actuate the economic cooperation.
This paper attempts to gather information about the present efforts to reform the international
financial system, with a focus on the IMF's changing role and its responses to the global
economic crisis. The strong dominance of neo-liberal economic philosophy of the IMF leads to a
negligence of some basic economic problems the modern economies face with, but on the other
hand, the Fund's surveillance of macroeconomic issues has expanded to cover topics with a
relevance to its mandate. Therefore, with well-managed reform, the Fund could play a useful role
in resolving global economic imbalances. Empirical analysis is used to describe the information
sources utilized, given the results of the economies of the IMF country members during and after
the crisis. The main subject of this paper is the analysis of the proposals, scenarios and possible
directions to reform the Fund and the prediction of its "new" role in the international monetary
and financial system.
Keywords: Global economy, IMF reforms, Crisis
JEL classification: G20, F33
29
MANAGEMENT AND TRAINING OF WORKING GROUP INSIDE THE ORGANIZATION
Nuhi Sela1, Hamit Aliu2
Faculty of Economics
State University of Tetova, Macedonia
[email protected], [email protected]
Abstract
Human resource management is a big challenge and a difficult task in the work of managers,
reflects the importance of workers or practitioners as an important source for the organization. In
addition, it is considered to be part of the process of fulfillment of the objectives realized through
research, development and correct use of human resources inside the organization. Managers
also need to know and apply what skills within the organization or institution through surveys
and different standards. Management of a study on specific groups requires experience,
knowledge and practical work. Based on this analysis, managers can build a development and
training program in the general preparation of the working group for current and future work.
Key words: Management, Working Groups, Analysis, Organization, Development, Qualifying
JEL classification: M53, J50
30
THE ROLE OF SOCIAL MEDIA IN TECHNOLOGY ADOPTION THROUGHOUT THE
PRODUCT LIFE CYCLE
Anja Orčik, Jelena Stanković, Slađana Gajić
University of Novi Sad, Faculty of Technical Sciences, Novi Sad, Republic of Serbia
[email protected], [email protected], [email protected]
Abstract
Contemporary digital and Internet culture enables higher level of interactions between customers
and companies, as well as among customers themselves. These trends are followed by faster
technology adoption and innovation diffusion. The aim of this paper is to show the influence of
social media in adopting technology during different phases of a product life cycle. Empowered
by social media, customers communicate, share experiences and knowledge in their networks,
and become more informed and active. Companies have to listen to their customers, to
understand their needs and build close relationships with them, having in mind how to reach
distinct customer types. Technology adoption life cycle, with the support of social media, can be
considered as a successful management and marketing strategy tool for innovative products and
services. Current literature is going to be reviewed, and suggestions for possible further research
in this area will be given.
Keywords: Social media, Technology adoption life cycle, Customer innovation
JEL classification: L82, D87
31
AN ANALYSIS OF THE MISMATCH BETWEEN SUPPLY AND DEMAND ON THE
MACEDONIAN LABOUR MARKET
Goran Pechijareski, MA
Abstract
The unemployment represents one of the crucial economic and social problems in the Republic
of Macedonia. This issue is particularly interesting for academic research due to the persistence
of high unemployment rate during a relatively long period of time. In addition, Long-term
unemployment has significantly contributed to an erosion of skills and motivation of
unemployed workers, making them less employable over time. We argue that the mismatch of
the supply and the demand on the Macedonian labor market is one of the key aspects of the
unemployment problem. This paper will analyze the labor supply and demand on the
Macedonian labor market by emphasizing various socio-demographic characteristics. For this
purpose we will use the officially published data by the Macedonian Statistical Office, as well as
other academic sources. The analysis will aim to reveal the eventual existence of structural
mismatch between labor supply and demand. Accordingly, we will attempt to create policy
recommendations and will address several issues in terms of overcoming the mismatch between
supply and demand on the Macedonian labor market.
Keywords: Labor market, unemployment, supply, demand, mismatch.
JEL classification: J22, J23
32
TRIGGERS OF THE SUBPRIME MORTGAGE CRISIS,
STILL NOT DEFEATED BY THE WORLD
Renata Petrevska Nechkoska
Faculty of Economics Prilep, Macedonia
Abstract
The subprime mortgage crisis in the USA cascaded through the world an ambience of
helplessness, dependence, inability, collateral damage and “what-went-wrong” notion in almost
every citizen and entity in the world, one way or another. The principles of Trust, System, belief
in the Guidance and the Rules were shattered and the existing Paradigm regardless of its name
and economic theory affiliation became too metaphysical to be carried on in the future. This
paper tends to point out the general triggers of the crisis, analyzed in comparison with the
conservative (and, from this point in time: vigilant) approach in: Banking, Economy, Accounting
and Auditing, Government, Monetary Authority and last but not least, Stock Market Instruments.
I am placing under observation and examination the divergence between the actual realism of the
above mentioned areas which contained the causes of the crisis and the scientific and practical
reasoning and acting. This breakdown of the reasons for the subprime mortgage crisis is
performed with the goal of equipping the businessman of the presence with the conviction that at
least every Individual action, let alone, every Government and Authority action can and should
be based on “common sense” which is, evidently, not-so-common nowadays. The capitalism in
its most sophisticated and complex form showed once again its distinguishing feature – “the
Selfish Individualism”, cunningly hidden under the veil of Common Welfare. When we, as
“advanced” citizens of the world, are erudite of the “snowballs” and “bubbles”, of their true
nature, benefits and dangers, we will be more prudent in every relation and action we take, on
behalf of ourselves, our businesses and institutions, and the states we live in.
Keywords: Subprime mortgage crisis, Triggers, Bubbles
JEL classification: G15, P17
33
THE IMPACT OF INNOVATION IN SMES PERFORMANCE
Lura Rexhepi
Faculty of Economics, University of Prishtina,
This paper explores the impact of innovation in the performance of Small and Medium
Enterprises, by focusing on different types of innovations in order to be competitive in this
dynamic world.
This paper presents the SMEs contribution in economic growth, as well as various innovation
types used by SMEs to achieve business performance. A thorough research of secondary data has
been undertaken for the SMEs in Kosovo. The main contributor is the Business Support Centre
Kosovo, who developed a survey for 500 SMEs in Kosovo carried out in December 2011 with
the aim to analyze the profile of entrepreneurship and SMEs in Kosovo. From this survey,
empirical findings related to the innovation activities are presented.
The results show that based on the degree of innovation development in SMEs in Kosovo, they
are focused mainly in the improvement of the existing products. The results of this paper
illustrate that only 19.6% in 2010 of SMEs conducted some entrepreneurial activities during the
past three years, such as creation or modification of the current products, services and processes,
while in 2011, it increased to 22.1%. On the other hand, during the past three years, 15.9% of
new products and services were introduced in SMEs in 2010, while in 2011 there is a decrease to
only 8.5%. Another finding includes the lack of high cooperation of the SMEs when conducting
innovation activities.
This study provides findings which are valid for SMEs in Kosovo, and should not be generalized
to the SMEs in the region or beyond. However, more research for SMEs might be conducted in
other countries to compare the results.
This paper will have significant value to the SMEs by understanding the innovation types that
lead to performance.
Keywords - SMEs, innovation, business performance, economic growth
JEL classification: L20, M10
34
MAIN FACTORS THAT INFLUENCE FAILURE OF SMES IN KOSOVO
PhD Candidate Sevdie Alshiqi – Bekteshi
Abstract
This study attempt to identify factors that are affecting business failure of small and medium
enterprises (SMEs) in Kosovo. Based on the literature review on the empirical studies utilized in
identification of factors that lead to success or failure by emphasis in Small and Medium
Enterprises (SMEs). From the literature review, it became clear that there are a numerous
advantages and disadvantages associated with operating SMEs. Recently, in developing
countries Small and Medium Enterprises have the most important role of employment
opportunities. Despite this fact for new opportunities for employment, economic growth,
employment generation, subcontracting for larger organizations, providing new products and
services, the SMEs in Kosovo have faced such difficulties, especially financing. The
environment for doing business in Kosovo is such that it constrains businesses and hauls them
into failure.
The methodology used in this paper is secondary data provided by Riinvest Institute, BSC
Kosovo we provide that these possibilities for funding are very difficult to build the capacity of
enterprises in Kosovo. This statement derived from the fact that interest rates of commercial
bank-the main source of financing are very higher and often unaffordable by enterprises in
general.
This study intends to fill the gap in studies on factors influencing SMEs failure in Kosovo and
also to provide the understanding on helping people to reduce the risk of failure and increase
chances of success.
Key words: success, failure, Small and Medium Enterprises, environment, factors, finance,
economic condition, Kosovo.
JEL classification: L26, G21, O44
35
THE POTENTIAL ADVANTAGES AND DISADVANTAGES OF CONTRACT FARMING
M.Sc. Shpresim Domi
University “St. Kliment Ohridski”-Bitola, Faculty of Economics-Prilep,
Republic of Macedonia
Contact: [email protected]
Abstract
In most of the Albanian regions, the relationships among suppliers, farmers, and intermediaries
are not based on formal contracts. Usually input suppliers and intermediaries act in their own
interest only, without considering the long-term business relationship aspect with the farmers. In
this context displayed the need of an instrument that could integrate the farmers vertically in the
value chain. One of the well-known ways of vertical integration is contract farming.
Furthermore, farmers are increasingly facing with high cost of production. As a result, the main
purpose of this paper is to deal with the problem of agricultural inputs at the farm level, in the
context of the profitability of the use of these inputs and making evident some potential
advantages and disadvantages of contract farming. In order to reach this purpose, this study is
based on primary and secondary data. The primary data have been collected through focus
groups and in-depth interviews with farmers and input suppliers in the rural area of Grabjan in
Lushnje. The secondary data have been secured by previously conducted studies such as the
statistical yearbook of the Albanian Ministry of Agriculture Food and Consumer Protection
(MAFCP), which offer the prices trends of the input and output at the farm level.
This paper suggests that farmers of Grabjan area should integrate vertically by establishing
contracts especially with intermediaries, who can provide for them also inputs. Farmers’
participation in contracts provides them with several advantages such as reduced risks, financing
opportunities, access to market information, increase revenues, etc.
Keywords: Contract farming, agricultural input, financial profitable, economic profitable.
JEL classification: Q10, G20
36
SUPPLY CHAIN MANAGEMENT –A COMPETITIVE ADVANTAGE FOR
SMALL AND MEDIUM ENTERPRISES (SME’S)
ZoranSpaseski, Phd student,
ABSTRACT
The purpose of this study is to present the development and applicability of supply chain
management practices in Small and Medium Enterprises (SME’s). Effective supply chain
management (SCM) has become a potentially valuable way of securing competitive advantage
and improving organizational performance since competition is no longer between organizations,
but among supply chains. Literature has been reviewed to identify some of the critical success
factors and challenges that SME’s faced by adopting SCM strategic advantages. The results of
this study illustrate that SCM strategies are tremendously important for the SME’s in order to
remain competitive and profitable. In this paper, we will first analyse the concept of SCM in
general and then explain its application in the case of SME’s.
Keywords: Supply Chain Management, Small and medium enterprises (SME’s), competitive
advantage.
JEL classification: L81,M20
37
RECONDITIOTNS THAT ENABLE SECURITY ENVIRONMENT IN ELECTRONIC
COMMERCE
MSc Stojkovski Viktorija
St. Kliment Ohridski- Bitola
Faculty of Administration and Information Systems Management - Bitola
Abstract
Electronic commerce now and in the future will be an attractive topic, as shown by the fact that
more and more companies have their own sites through which advertise, receive orders and
charge and so on. The biggest dilemma for buyers is that how safe online shopping is? And the
biggest challenge for the vendors is to provide security for the buyers when they are buying
online. This paper handles exactly the preconditions that enable security in electronic commerce.
The aim of this research is to show which are the preconditions for security e-commerce are and
how much they are implemented in our country. This descriptive research paper will help both
buyers and sellers for constructive security environment in electronic commerce.
Key words: electronic commerce, preconditions, security, buyers, sellers.
JEL classification: M15, O30
38
BUSINESS INCUBATOR AS AN ECONOMIC DEVELOPMENT STRATEGY: CASE
STUDY OF BUSINESS INCUBATOR IN BITOLA
Suzana Trajkovska Kochankovska
Business Start up centre Bitola
A business incubator is a fertile environment for start-ups and entrepreneurs to transform their
ideas and innovation into self-employment and growing companies. Entrepreneurs and small
businesses receive support and guidance to be able to start up their business concepts, operate
effectively and be competitive on the market.
Business Incubator from strategic point of view supports diverse economies, new technologies,
job creation and sales increase. The aim of this paper is to present the support of business
incubation – business planning, consultancy, financing, technology transfer, networking to
SME’s. It will be presented trough the process of establishment and growth of companies and
analyses of empirical data collected in 2 year period of implementation of project for SME
support in the Pelagonia region. Furthermore, the experience and achieved results of the existing
incubator model in Bitola can serve as a tool for local and national economic development. The
expected outcomes of the study supports the facts that the quality initiatives and careful planning
of incubator may present a pathway to stimulate an economy and in particular to transfer the
international donor experience in local environment. The findings of this case study can help
policy makers, local governments, practitioners to increase their knowledge for SME support and
implement the already proven incubator program.
Business incubator, business support, economic development strategy
JEL classification:R11, D85
39
IMPLEMENTING CONTEMPORARY SOLUTION TO SMEs MARKETING
Boris Trimcev, PhD Student DocSMEs, UKLO, Faculty of Economics-Prilep,
Abstract
Decreasing the level of marketing expenditures becomes an important task, especially in the time
of economic crisis. Although small and medium enterprises are more flexible in changing the
business processes and they can easily adapt to the new conditions, still they are not immune to
the bigger impact coming from the outside as well as the other things they cannot control. But
there are some things which can be controllable by the SMEs, and that are related to the
marketing expenditure. The technology advancement, newest achievement and increased level of
technical knowledge by the target audience are the opportunities to catch in order to survive on
the market. This paper concerns the ways of applying different marketing strategies and using
different marketing tools with a goal to achieve the same results with a lower financial resources
needed than the conventional marketing programs. Social media, on-line marketing, search
engine optimization and well structured web pages are just few of the modern tools to boost the
sales and in the same time to save part of the marketing budget. This paper will present the
cutting edge technologies, mobile device and mobile services which can contribute to the
efficacy of the marketing programs. The goal is to find out the most efficacy combination of e-
marketing tools which can be used by the SMEs, at the same time achieving better impact for
their implemented marketing strategies. The goal will be achieved through systematic approach
to every e-marketing tool, finding out their advantages and drawbacks.
Keywords: e-marketing, mobile marketing, SMEs, social media,
JEL classification:L25, M31, M37
40
THE BLUE OCEAN STRATEGY CONCEPT APPLICATION IN MACEDONIAN SMEs
Ljupco Veleski
PhD student at the International Doctoral Programme
Entrepreneurship and SMEs Management - Faculty of Economics - Prilep
Abstract
The paper aims to explore the awareness of Macedonian companies about the relatively new
marketing concept "Blue Ocean Strategy". It tries to depict the level of overall knowledge of the
meaning of this strategy by the companies, the level of its application, the advantages they could
gain and the readiness to accept and apply this new marketing concept. In order to accomplish
the goal of this research, primary and secondary data are used. A sample of randomly selected
companies was created and survey was done. For this purpose, questionnaires were sent to 152
business subjects (Macedonian SMEs) by e-mail of which 95 responded and represented the base
for our analyses. The questionnaire was designed for respondents who indirectly could indicate
possibility of the existence of "blue-ocean" in their organizational structure, in their daily
operations and market in which they act. We also did an extensive survey of secondary data, the
existent literature and online databases on the topic of applying of this new marketing concept.
The goal was to provide a preliminary theoretical framework about its application in SME
segment. The paper will try to reach the conclusion regarding the need of a systematic approach
in terms of The Blue Ocean Strategy to be applied in order to define the potential, first of the
national economy, and then of the interested companies, to increase their competitiveness outside
the Republic of Macedonia and stimulate the creation of blue oceans in those segments of the
economy and those businesses that have a major objective chances for success of regional and
global markets.
Key words: blue ocean strategy, competitiveness
JEL Classification: M13, O31, M30
41
ISSUES AFFECTING THE GROWTH OF SMALL AND MEDIUM ENTERPRISES IN
KOSOVO
Shpresim Vranovci ,PhD student ;
Abstract
The objective of this paper is to describe and analyse the obstacles impacting the growth of small
and medium enterprises in Kosovo. In the process of the transition from communism to a market
economy, Kosovo experienced a very difficult war, international governance and subsequently,
the declaration of its independence. The Government is trying to position small and medium
enterprises (SMEs) at a central point and make them a key factor for economic development in
the country. These enterprises are being given increasing attention in recent years; however,
findings indicate that there are a number of significant factors affecting the growth of small and
medium enterprises in the country negatively. The most important factors that need to be
addressed are: lack of access to finance, competition, corruption, globalization, laws and
regulations, management competence, lack of skilled labour as well as low investment in
innovation, technology and marketing etc.
The empirical data for the description is primarily provided by the World Bank and statistical
office on Kosovo.
The overall objective of the research is to say something about the particular obstacles and
institutional settings of Kosovo, and not to provide generalisations about national government
systems.
Key words: SMEs, growth, entrepreneurship, economic development in Kosovo
JEL Classification: L26, O20
42
THE BENEFITS OF STANDARDIZATION FOR BUSINESS INTELLIGENCE TOOLS
Dejan Zdraveski
Faculty of economics-Prilep
Abstract
Implementation of standards for business intelligence in the company can result in significant
cost savings, greater control over information, and better alignment with business users. All this,
leads to increased competitive advantage of company by exploiting the benefits of the
implementation of business intelligence systems. But the implementation of standards for
business intelligence requires pragmatic phased approach that takes into account the
organizational structure of the companies and business value of existing applications for business
intelligence.
Sometimes standardization is seen from a negative aspect, because people think it means using
only one tool and the exclusion of all others. Other terms that can be used for the standardization
of business intelligence software is rationalization of business intelligence, business intelligence
consolidation, but no matter which term is used in the end you get the same benefits. According
to Forrester, over 2000 global companies use between five and fifteen reporting and analysis
tools1. The purpose of standardization of business intelligence is to reduce the number of these
tools and to build a portfolio of software tools for business intelligence that will overlap as little
as possible. Gartner estimates that companies that provide resistance to standardization of
business intelligence will be able to strategically deploy them and make 50% more cost for each
additional tool (with a probability of 0.8)2.
JEL Classification: M15,L15
1 www.foresters.com 2 Sallam R., Richardson J., Hagerty J., Hostmann B., Magic quadrant for business intelligence platforms, Gartner, 2011
43
IMPACT OF THE BUSINESS ENVIRONMENT IN PERFORMANCE OF
MANUFACTURING FIRMS IN KOSOVO
Kujtim Zylfijaj Faculty of Economics, University of Dardania,
Abstract
Due to the poor business environment, manufacturing firms in Kosovo suffer the lack of
investments, which remains underdeveloped sector. The aim of the paper is to explore the level
of impact of poor business environment in the performance of manufacturing firms. Research
objectives include identification of the literature review outcomes for the manufacturing sector in
Kosovo, barriers of external factors that manufacturing firms encounter during the development
of entrepreneurial activities, the importance of manufacturing firms in developing countries, and
the impact of business environment to the manufacturing firms.
Using secondary data, this paper analyzes the impact of business environment on manufacturing
firms in Kosovo, which is an important sector for economic growth. Particularly, it analyzes the
influence of several external factors that are key important to development of manufacturing
firms. Among the factors to be investigated are regulation, access to finance, infrastructure and
informal economy.
The results from this paper include several constraints of the business environments on
manufacturing firms in Kosovo. The main ones are high interest rates, informal economy and
corruption. Because of the poor institutional environment for doing business, other constraints
include supply with electricity, fiscal evasion, crime and administrative borders. Another finding
includes higher cost of doing business because some firms operate informally.
Even though this study makes significant contribution to the academic knowledge, which helps
manufacturing firms to identify and search for approaches to mitigate these barriers caused by
external factors, this study has limitation because it is only valid for manufacturing firms in
Kosovo.
Key words: business environment, manufacturing firms, economic growth, performance
JEL Classification: O14,L26
44
ADVANTAGES OF IMPLEMENTATION BRAND-PORTFOLIO STRATEGIES ON THE
CASE OF MACEDONIAN COMPANIES
Marija Midovska
Faculty of economics Prilep
Abstract
Nowadays, the usage of strategic approach in brand-management is crucial for every company
that aims to reach competitive advantage. This paper focuses on remarkably delicate matter that
is very current and widely evident. Namely, the paper discusses the elaboration of distinctive
area in the brand-management that is concerned with designing brand-portfolio strategies for
optimizing the companies’ brand-portfolio, as well as their implementation in the corporation
brand-strategies. A special attention is given to Macedonian companies that can achieve their
competitiveness in the long-term, only through updating positive experiences and practice in this
branch.
This paper makes effort to merge the research aspects with the management reality. The main
objective of the research is to analyze the current state of the brand-management strategies, i.e.
their contribution in the creation of the companies' maintaining competitive advantage,
especially Macedonian companies that need to learn from the experiences of the successful
worldwide companies. The paper objectives are mainly concerned with detecting the
implications of the effective brand-management on the costumers and the company, along with
the role of the brand-strategies in creating value for the customer and profit for the company.
The research was conducted with various research methods for data collection. In this context are
used the methods of analysis, synthesis, comparison and case study, as well as other methods that
are applicable in this branch.
The results from the research point out that the implementation of brand-portfolio strategies
leads to enhanced efficacy and efficiency of the company, likewise synergy. Furthermore, there
are separate considerations that enable to make references to Macedonian companies for the
creation of effective brand-portfolio strategies.
Key words: brand, strategy, synergy, brand-portfolio.
JEL Classification: G31,L15